The Dun & Bradstreet Composite Business Optimism Index stands at 156.2 during Q1 2012, a decline of 8.8% as compared to Q1 2011. Based on the responses received, it was observed that five out of the six optimism indices – namely, Volume of Sales, Net Profits, Selling Prices, New Orders and Employee Levels have registered a decrease as compared to Q1 2011.
Composite Business Optimism Index declined to 156.2 for Q1 2012, a decline of 8.8% as compared to Q1 2011. Resultant Optimism for Volume of Sales stands at 64% – a decline of 26 percentage points as compared to Q1 2011. Resultant Optimism for Net Profits stands at an eleven-quarter low of 51% – a decline of 29 percentage points as compared to Q1 2011
Fears of further deterioration of the global economic situation and continued political gridlock on economic reforms have taken a severe toll on business sentiment. The continued weakening of rupee coupled with significant downward revision in the exports data by government have also added to the heightened uncertainty. The prevailing sentiment is truly exemplified in the D&B Business Optimism Index for Q1 2012, which has declined by as much as 8.8% as compared to Q1 2011. Each of the six optimism indices reflects a subdued outlook, with the indices for Net Profits, Volume of Sales and New Orders being lower by over 25% as compared to last year”, said Kaushal Sampat, President & CEO, Dun & Bradstreet – India. “Going forward, policy responses to the global turmoil, RBI’s monetary policy stance in the next policy review and the Government’s proposals for the corporate sector in the forthcoming Union Budget would play a key role in determining business expectations over the next quarter. Moreover, success in breaking the political impasse on key legislation will also be a pre-requisite for improving business sentiment in upcoming quarters” he added.